Answer:
Specter Co.
The amount reported on the year-end balance sheet for cash and cash equivalents is:
= $31,100.
Explanation:
a) Data and Calculations:
Cash deposit in checking account = $16,000
Bond investment due in 20 years = $46,000
US Treasury bill due in 1 month = $11,500
3-year loan to an employee = $850
Currency and coins = $3,600
Accounts receivable $1,150
Cash and Cash Equivalents:
Cash deposit in checking account $16,000
US Treasury bill due in 1 month 11,500
Currency and coins 3,600
Total cash and cash equivalents = $31,100
b) Cash and Cash Equivalents are Specter's assets that are in the form of cash (currency and coins) and Specter's assets that can be readily converted into cash (Treasury bills and notes, commercial papers. certificates of deposit, money market funds, and cash management pools).
